DL E&C Signs Design Contract with Global SMR Company X-energy.
DATE 2026.03.25
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DL E&C Signs Design Contract with Global SMR Company X-energy
- Strengthening cooperation with leading U.S. SMR company X-energy… leading the Generation IV SMR market
- A signal for preempting the KRW 753 trillion global SMR market… strengthening the energy value chain
DL E&C announced on the 25th that it has signed an “SMR Standard Design” contract with X-energy, a leading small modular reactor (SMR) company in the United States. This contract formalizes the collaboration that has been pursued with X-energy since 2023, and the design is scheduled to be completed by the first half of next year. The contract amount is approximately USD 10 million (approximately KRW 15 billion).
The standardization of SMR, considered next-generation nuclear power, is a design that serves as the backbone of SMR construction, specifying how each facility within the power plant is interconnected and operates. It is the first time that a domestic construction company has directly performed standard design. It also implies leading the Generation IV SMR market through a strategic partnership with X-energy.
Unlike conventional light water reactors that use water as a coolant, X-energy has Generation IV SMR technology that uses helium gas as a coolant. The completed design is expected to be applied to subsequent projects, starting with the first unit scheduled to begin operation in 2030. X-energy is currently promoting SMR construction in Texas and Washington State in the United States, and the electricity produced there is planned to be supplied to Amazon Web Services (AWS).
X-energy has recently been expanding SMR cooperation with global big tech companies. In 2024, it is promoting the introduction of 5GW of SMR based on investment and cooperation from Amazon, and last year it signed a joint development agreement with UK energy company Centrica for 6GW of nuclear power development. For X-energy, this has the effect of securing large-scale demand sources in advance.
The reason DL E&C and X-energy are pursuing SMR standardization is that success depends on how quickly and how many SMRs can be constructed to achieve economies of scale. If the stage of creating the “brain” of SMR is “technology development,” “standard design” is the stage of effectively commercializing already developed technology. The key is to increase productivity and reduce costs by repeatedly applying the same design.
The core of standardization is “modularization.” Modularization is a method of grouping multiple components with similar functions into a single module, manufacturing them in advance, and assembling them like Lego blocks. While large-scale nuclear power plants have a structure in which major facilities such as reactors and steam turbines are connected by piping, SMRs have a “modular” structure in which major facilities of conventional large-scale nuclear power plants are contained within a single vessel. This method has the advantage of improving construction efficiency by reducing the number of components and processes required for power plants, and securing stability in quality control.
DL E&C plans to promote rapid standardization and modularization of SMR based on its design technology and construction experience accumulated in plant sectors such as power plants and chemical plants. SMRs have basic structures and facilities similar to those of power plants. DL E&C has proven its competitiveness by constructing power plants with a total capacity of 51.5GW in 19 countries around the world.
Following DL E&C’s investment of USD 20 million (approximately KRW 30 billion) in X-energy in 2023, the strategic partnership between the two companies, or their “SMR alliance,” is expected to be further strengthened as DL E&C performs the standard design this year. The two companies have continued to strengthen their cooperative relationship, including jointly attending the “Korea-U.S. Nuclear Innovation Roundtable” hosted by the U.S. Department of Energy and Korea’s Ministry of Trade, Industry and Energy last year.
DL E&C is also focusing on creating synergy with its affiliates such as DL Energy. DL Energy is DL Group’s independent power producer, and the possibility of it leading subsequent SMR-related projects is being discussed. If DL Energy takes charge of SMR project development and investment, DL E&C will perform engineering, procurement, and construction (EPC), and power generation and operation will be handled by DL Energy. With this contract, DL E&C plans to expand its role beyond simple construction to a developer that directly develops projects, and to accelerate the establishment of the group’s energy value chain.
SMR refers to a small reactor with an electrical output of 300MW or less, and is emerging as a “game changer” capable of achieving both power supply and carbon neutrality. According to the UK’s National Nuclear Laboratory (NNL), the global SMR market is expected to reach 85GW and about 300 units by 2035, amounting to USD 500 billion (approximately KRW 753 trillion).
Yoo Jae-ho, Head of the Plant Division at DL E&C, said, “This project goes beyond simple design and is an advanced business model for developing and designing standardized SMRs,” adding, “As a key partner in X-energy’s business, we plan to lead the Generation IV global SMR market and further strengthen the energy value chain.”
Photo Caption:
Dinkar S. Bhatia, Chief Commercial Officer (CCO) of X-energy (fifth from left), and Bae Jong-sik, Deputy Head of the Plant Division at DL E&C (sixth from left), are taking a commemorative photo at the SMR standard design contract signing ceremony held at the headquarters in Magok-dong, Seoul.
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